NORTHAMPTON, Mass. (WWLP) - There is some push-back against a new state sales tax on computer services.
The computer and software services tax went into effect July 31, and for the second time since then there is a petition by opponents to allow voters the chance to repeal it.
This new 6.25 percent tax is on software installation and modification.
It could cause damage to job creation and to the Massachusetts economy according to the Taxpayers foundation, who are one of the business leaders fighting to repeal the tax.
The other issue with the tax has been the confusing language of the law, business owners of the
Northeast IT Systems told 22News.
Co-owner of the business, Brian Sullivan, told 22News, "We're going to have to figure out what's taxable and what's not taxable and I feel that every business owner might interpret that differently."
"They obviously don't need another tax. It's really just taxing business owners and it's going to trickle down to the consumer anyway at some point," said co-owner Joel Mollison.
They also explained the extra cost to customers could take business away from them. They fear more people will try and do the work on their own rather than higher them for the work.
The Department of Revenue told 22News they are reaching out to businesses to try and clear up any confusion with the language of the law. They project the new tax will bring in nearly 161 million dollars in revenue.